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Assuming a declining correlation in yields as distance between pairs of orchards increases, yield variability in peach production may be reduced by increasing distances among orchards. As a measure of yield variability that avoids possible bias resulting from orchard-specific effects, a stochastic production function is estimated. Results support the assumption that a declining correlation between yields exists as distance increases. For every mile further apart, the correlation in yield declines 2.28%. Copyright 1997, Oxford University Press.

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